A highly anticipated decision granting a preliminary injunction preventing California from applying its new independent contractor test to motor carriers was issued by Senior U.S. District Judge Roger T. Benitez on January 12. While the ruling was not unexpected given the tenor of the judge’s Continue Reading
Federal Judge Extends TRO on California’s Enforcement of AB 5
A federal judge has taken under advisement the California Trucking Association’s request for a preliminary injunction enjoining California’s enforcement of its new AB 5 statute for determining independent contractor status. After a widely anticipated hearing in San Diego on January 13, 2020, U.S. Continue Reading
Delaware Supreme Court Addresses Bad-Faith Pleading Standard, Affirms Dismissal of Derivative Suit
On January 13, 2020, a panel of three justices from the Supreme Court of Delaware issued an opinion affirming the Court of Chancery’s dismissal with prejudice of a stockholder derivative action against the board of directors of Uber Technologies, Inc. (Uber) for failure to make a pre-filing demand Continue Reading
USDOT Announces Updated Autonomous Vehicle Technology Guidelines
United States Department of Transportation (USDOT) Secretary Elaine Chao announced the federal government’s latest policy for autonomous vehicle (AV) technology, aimed at ensuring “American leadership in AV technology and integration by providing unified guidelines for the first time across the Continue Reading
Venture Capital & Emerging Growth Companies January 2020 Highlights
We are pleased to share outstanding highlights this month about our firm, the venture capital landscape, and our clients and contacts who continuously enrich the entrepreneurial ecosystem. McCarter Highlights It has been a great year of successes for the firm and our clients. Quarter after Continue Reading
New York Appellate Division Third Department Joins Second Department on Issues Concerning Mortgage Loan Acceleration and a Borrower’s Right to Cure
Introduction The New York Appellate Division Third Department reached three notable determinations being closely monitored by the mortgage servicing and lending industry in the case Wells Fargo Bank, N.A. v. Portu, 2020 NY Slip Op 00025 (Portu). First, that the six-month savings provision in CPLR Continue Reading
Motor Carriers Granted Temporary Relief by California Federal Court from Stringent Independent Contractor Classifications
Good news for the motor carrier industry ... for now. A federal judge has issued a temporary restraining order that prevents the state of California from enforcing a strict independent contractor misclassification law against motor carriers—that was set to take effect on January 1—until the court Continue Reading
Confidentiality, E-mail, and Dues: NLRB Reverses Three Major Obama-Era Rulings
With a steady decline in private sector unionization and a lack of political muscle to change the National Labor Relations Act (“Act”), organized labor in the Obama era relied heavily on decisional rulings from the National Labor Relations Board (“Board”) as a key way to expand workers’ rights and Continue Reading
Court of Chancery Confirms Managerial Bump-Out Theory Is Not Valid Under Delaware Law
In Llamas v. Titus, C.A. No. 2018-0516-JTL (Del. Ch. June 18, 2019), the Delaware Court of Chancery addressed the validity of the appointment of managers of a Delaware LLC, recognizing that Section 18-110 (a) of the Delaware LLC Act, which is the counterpart to DGCL Section 225, allows for an Continue Reading
Delaware Court of Chancery Denies Italian Citizen’s Bid to Divest the Court of Jurisdiction Over a Matter Involving Delaware Limited Liability Partnerships
The Delaware Court of Chancery rejected a foreign citizen’s efforts to dismiss a lawsuit affecting a Delaware limited liability partnership in favor of his preferred forum in Italy. While AlixPartners confirmed that an American court’s legal authority is not absolute, a defendant bears the difficult Continue Reading